Company records profit for Q3

Wmn
Wednesday, February 07, 2018

Japanese transportation giant Mitsui O.S.K. Lines has reported JPY 29.2 billion ($F0.54b) worth of profit attributable to owners for the third quarter of the 2017 fiscal year, up from JPY19.02b ($F0.35b) posted in the corresponding quarter a year earlier.

The company's revenue stood at $US10.9b ($F22.05b), while its operating profit was $US215 million ($F435m) in the quarter, recovering from an operating loss a year earlier.

For the nine-month period from April to December 2017, revenue was up 14.6 per cent when compared to the same period from 2016 reaching $1.23 trillion, while profit was 53.6 per cent higher year-on-year, standing at $29.2 billion.

The better financial performance was mainly driven by the group's containership business which reported 26.8 per cent higher revenue year-on-year and its dry bulk shipping unit which reported 19.8 per cent higher profit year-on-year.

Higher annual contract freight rates following contract renewals since the start of the year and efforts to cut operating costs also contributed to cutting losses in the boxship division.

However, MOL's tanker business suffered a major blow with 47.7 per cent profit plunge year-on-year. VLCC earnings were affected by prolonged OPEC cuts coupled with rampant vessel deliveries.

Slowdowns in cargo volumes in product tanker sector and supply and demand imbalance in LPG market exerted further pressure on the sector.